A command economy, also known as a planned economy, is an economic system where a central government or authority controls and directs all major economic activities. This includes deciding what goods and services are produced, how much is produced, how resources are allocated, and the prices at which goods and services are sold. In such a system, most industries and means of production are publicly owned, and private ownership is either nonexistent or severely limited

. Key characteristics of a command economy include:

• Centralized planning and control by the government.
• Government ownership of resources and production.
• Fixed prices set by the government rather than market forces.
• Limited or no competition between businesses.
• Restricted consumer choice due to government control over production.
• The government aims to ensure equitable distribution of goods and services, minimize economic disparities, and maintain full employment

Command economies are typically associated with socialist or communist political systems, where the government prioritizes social welfare and economic equality over profit motives. Examples of countries that have had command economies include the former Soviet Union, Cuba, and North Korea. Some countries, like China, have transitioned from a command economy to a mixed system incorporating market elements

. In summary, a command economy is a system where the government centrally plans and controls economic activity to achieve social and economic goals, contrasting with free-market economies where supply and demand determine production and pricing